Revenue Performance - Revenue for the three months ended March 31, 2025, decreased by $1.7 million, or 50%, to $1.7 million from $3.4 million in the same period of 2024[110] - Product development contract revenue increased by $0.8 million, or 94%, from $0.9 million for the three months ended March 31, 2024, to $1.7 million for the same period in 2025[111] - Revenue derived from product sales decreased by $2.6 million, or 100%, from $2.6 million for the three months ended March 31, 2024, to $0.0 million for the same period in 2025[112] - The company expects to begin generating revenues from commercial customers of Palladyne IQ and Palladyne Pilot in 2025[101] Sales and Marketing - The majority of sales and marketing efforts are focused on U.S. markets, with limited exploration of select non-U.S. markets[101] - Sales and marketing expenses increased by $0.4 million, or 51%, from $0.8 million in Q1 2024 to $1.2 million in Q1 2025, driven by higher labor and marketing costs[117] Financial Position - The company has raised approximately $39.4 million in gross proceeds from the sale of Common Stock and warrants during the fourth quarter of 2024 and the first quarter of 2025[106] - Cash, cash equivalents, and marketable securities totaled $46.6 million as of March 31, 2025, up from $40.1 million as of December 31, 2024[122] Operating Expenses - Operating expenses decreased by $2.2 million, or 20%, from $10.8 million in Q1 2024 to $8.6 million in Q1 2025[113] - Cost of revenue fell by $1.5 million, or 81%, from $1.9 million in Q1 2024 to $0.4 million in Q1 2025, primarily due to lower product costs and decreased labor and material expenses[114] - General and administrative expenses decreased by $0.9 million, or 18%, from $5.1 million in Q1 2024 to $4.2 million in Q1 2025[116] Other Income and Cash Flow - Other income surged by $29.6 million, from $0.1 million in Q1 2024 to $29.7 million in Q1 2025, mainly due to unrealized gains on warrants and increased interest income[119] - Net cash used in operating activities increased by $0.3 million to $7.5 million in Q1 2025 from $7.2 million in Q1 2024[130] - Net cash used in investing activities increased by $43.5 million, primarily due to $27.5 million in purchases of marketable securities in Q1 2025[131] - Net cash provided by financing activities increased by $14.0 million, largely due to $13.9 million in net proceeds from the sale of Common Stock in Q1 2025[132] Backlog and Contracts - The backlog as of March 31, 2025, was $1.9 million, with a total estimated contract value of $8.8 million[121] - The company has U.S. government revenue-generating contracts related to its AI/ML Foundational Technology and products, meeting all development milestones to date[102] Company Classification and Accounting Policies - There have been no material changes to the company's critical accounting policies or estimates as disclosed in the Annual Report for the year ended December 31, 2024[136] - The company is classified as a smaller reporting company and is not required to provide additional market risk disclosures[138] Product Development and Commercialization - The company is focused on commercialization efforts, internal testing, and customer trials for both products throughout 2025[104] - The company believes its financial performance is dependent on its ability to enhance and update its products in response to evolving customer requirements[108]
Sarcos Technology and Robotics (STRC) - 2025 Q1 - Quarterly Report